Centre Announces New Opium Poppy Cultivation Policy for 2026-27, Sets Minimum Yield Benchmark of 800 Kg per Hectare [Read Notification]:

Centre Announces New Opium Poppy Cultivation Policy for 2026-27, Sets Minimum Yield Benchmark of 800 Kg per Hectare [Read Notification]

The Finance Ministry has announced eligibility criteria for opium poppy cultivation licences for 2026-27, setting an 800 kg per hectare yield benchmark and outlining rules for licence retention and suspension.

New Opium Poppy Licence Rules Announced

authorVanshika vermadateOct 24, 2026
Last update on Oct 24, 2026

The Union Ministry of Finance has issued a notification outlining the eligibility rules for cultivators seeking licences to grow opium poppy for the production of poppy straw during the 2026-27 crop year, from October 1, 2026, to September 30, 2027. The policy covers cultivation of poppy straw without extracting juice through lancing and sets out the conditions cultivators must meet to obtain or retain a licence.

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Under the new rules, cultivators who grew poppy during the 2025-26 crop year and delivered an average yield of at least 800 kg of un-lanced poppy straw per hectare at the designated weighing centre will generally be eligible for a licence, provided they have not been barred from cultivation for violating the policy. Those who delivered less than 800 kg per hectare in 2025-26 will be suspended from cultivation for 2026-27. However, they will retain their licences for the following crop year and may become eligible again, subject to that year's policy.

Cultivators whose licences were suspended in 2025-26 because their average yield fell below 800 kg per hectare in 2024-25 will also be eligible to apply for a licence for 2026-27, provided they meet the other conditions. The notification also includes cultivators who produced an average morphine yield of at least 3 kg but less than 4.4 kg per hectare from opium poppy grown for opium gum production through lancing during 2025-26.

The policy further covers cultivators who, under the supervision of the Central Bureau of Narcotics, ploughed back their entire poppy crop during both 2024-25 and 2025-26 but did not do so in 2023-24. Those who were eligible for a licence in 2025-26 but did not obtain one, or who received a licence but could not cultivate poppy for any reason, are also included among the eligible categories, subject to the notification's other conditions.

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The government has clarified that opium poppy cultivation will be permitted only in areas specifically notified by the Central Government. All applicants must meet the applicable eligibility requirements and any other conditions prescribed under the policy.

For complete information, refer to the following notification-

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Vanshika verma

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Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.
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